U.Today - Ki Young Ju, the founder and CEO of the CryptoQuant on-chain data aggregator, has shared his take on the current situation on the Bitcoin market and issued a gloomy forecast for the next 6-12 months.
He believes that the Bitcoin cycle has come to an end, and traders should not expect any major bullish movements soon. Crypto journalist and blogger Colin Wu commented on that, offering his interpretation.
"Bitcoin bull cycle is over"
Ju shared a chart displaying BTC PnL (Profit and Loss) Index cyclical signals, which suggests that bulls’ hopes for the next Bitcoin movement are unlikely to come true. The CryptoQuant boss believes that several on-chain indicators show the end of the current Bitcoin cycle.Ju said Bitcoin is likely to move in a bearish or sideways trend for the next half-year or even year. New liquidity is drying up, he reckons, and newly emerged whales are currently dumping their BTC at lower prices.
Ju also applied PCA to on-chain indexes such as the MVRV, SOPR and NUPL to calculate, a 365-day moving average, which is used to identify turning points in the one-year moving average trend. Still, some users in the comments stated that Ki Young Ju’s sell signal in 2020 was not quite correct.
Bitcoin may go back to $10,000: Mike McGlone
Last week, prominent commodity strategist at Bloomberg Intelligence Mike McGlone also revealed a bearish prospect for the world’s flagship cryptocurrency Bitcoin. Bloomberg’s expert believes that Bitcoin has high odds of losing a zero from $100,000 (the level reached earlier this year) and crashing back to $10,000.McGlone drew parallels between Bitcoin and the dot-com tech bubble witnessed by the Western world back in the 2000s, when the Nasdaq 100 that tracks the performance of leading technology companies skyrocketed and then plunged by about 80%. McGlone believes that Bitcoin may currently be turning into that bubble, which could crash later this year.
The expert also pointed out that since gold ETFs are witnessing large inflows while Bitcoin exchange-traded funds are being slammed with huge withdrawals, gold is likely to take the market leadership from gold in 2025.
He also pointed out that the U.S. stock market is crashing at the moment, and Bitcoin is largely moving in tandem with the S&P 500 index.